Abstract

The objective of thia research is to examine the influence of Investment
Opportunity Set (IOS) and corporate governance mechanism (audit committee
independence, independence of commissioner, institutional ownership, managerial
ownership) to earnings quality and firm value. This research also examines the
influence of earnings quality to firm value.
This research uses samples from 130 companies listed on Indonesia Stock
Exchange (IDX), by using purposive sampling which published financial report
among 2005-2009. The method of analysis of this research uses milti regression.
The results of this research show that (1) earnings quality didn’t have
significant influence to firm value, (2) Investment Opportunity Set (IOS) didn’t have
significant influence to earnings quality but had significant influence to firm value,
(3) audit committee independence didn’t have significant influence to earnings
quality but had significant influence to firm value, (4) independence of commissioner
had significant influence to earnings quality but didn’t have significant influence to
firm value, (5) institutional ownership had significant influence to earnings quality
but didn’t have significant influence to firm value, (6) managerial ownership had
significant influence to earnings quality and firm value, and (7) simultaneously of
Investment Opportunity Set (IOS), audit committee independence, independence of
commissioner, institutional ownership, and managerial ownership had significant
influence to earnings quality and firm value.